UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 13, 2004
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GREAT AMERICAN BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-25808 52-1923366
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
1311 S. Neil St., P.O. Box 1010, Champaign, IL 61824-1010
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(Address of principal executive offices) (Zip Code)
(217) 356-2265
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(Registrant's telephone number, including area code)
Item 7. Financial Statements and Exhibits
The Registrant incorporates by reference the press release dated January
13, 2004 attached as Exhibit 99.1, relating to the Company's announcement of
unaudited results for the year ended December 31, 2003.
Item 12. Results of Operations and Financial Condition
The Registrant incorporates by reference the press release dated January
13, 2004 attached as Exhibit 99.1, relating to the Company's announcement of
unaudited results for the year ended December 31, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Great American Bancorp, Inc.
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(Registrant)
Date January 13, 2004 /s/ Jane F. Adams
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Chief Financial Officer
EXHIBIT INDEX
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Exhibit
No. Description Method of Filing
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99.1 News Release Filed herewith
Dated January 13, 2004
NEWS RELEASE
FOR IMMEDIATE RELEASE
January 13, 2004
Contact: Ms. Jane F. Adams
Chief Financial Officer and Investor Relations
(217) 356-2265
GREAT AMERICAN BANCORP, INC.
UNAUDITED RESULTS FOR 2003 -- YEAR-TO-DATE NET INCOME OF $1,702,000
Champaign, Illinois - Great American Bancorp, Inc. (Nasdaq SmallCap/GTPS), the
holding company for First Federal Savings Bank of Champaign-Urbana, reported
earnings of $1,702,000 for the year ended December 31, 2003, a decrease of
$202,000, or 10.6%, from the $1,904,000 reported for fiscal 2002. Basic
earnings per share were $2.23 for the year ended December 31, 2003, compared
to $2.28 for the year ended December 31, 2002, while fully diluted earnings
per share were $2.02 for the year ended December 31, 2003 and $2.09 for the
year ended December 31, 2002.
Net income declined in 2003 due to lower net interest income and higher
operating expenses, offset by higher fees and commission income, and
reductions in the provision for loan losses and income tax expense.
Net interest income was $5,548,000 for the year ended December 31, 2003; a
decrease of $811,000, or 12.8%, from $6,359,000 reported for the year ended
December 31, 2002. Net interest income declined mainly as a result of lower
interest income from loans due to a reduction in total loan balances from 2002
levels and a decrease in average loan yields. The decline in net interest
income from loans was partially offset by a decrease in interest expense on
deposits and Federal Home Loan Bank ("FHLB") advances. Interest expense on
deposits declined primarily as a result of a shift in deposits from higher-
rate certificates of deposit to lower-rate demand accounts. The Company also
maintained lower balances of FHLB advances during 2003 compared to balances
maintained in 2002.
The Company recorded no provision for loan losses for 2003 compared to
$170,000 recorded for fiscal 2002. Management's analyses of the allowance for
loan losses during 2003 determined that no additional allocation to the
allowance was warranted.
Noninterest income totaled $3,339,000 for the year ended December 31, 2003,
$293,000, or 9.6%, higher than the $3,046,000 recorded for the year ended
December 31, 2002. This increase was mostly due to higher insurance sales
commissions. Insurance sales commissions increased $201,000 or 14.1%, from
$1,428,000 for the year ended December 31, 2002 to $1,629,000 for fiscal 2003.
This increase was mainly due to growth in new commercial and group life and
health insurance customers.
Noninterest expense was $6,493,000 for the twelve months ended December 31,
2003, $351,000, or 5.7% higher than the $6,142,000 reported for the year ended
December 31, 2002. Noninterest expense categories that were higher in 2003
included salaries and employee benefits, equipment expense, printing and
office supplies, directors and committee fees, insurance expense, marketing
and advertising expense, and amortization of mortgage servicing rights.
Income tax expense was $692,000 for fiscal 2003 compared to $1,189,000 for
2002, declining $497,000, or 41.8%. This decrease was primarily due to lower
pretax earnings and deductions for stock options exercised during 2003.
Net income for the fourth quarter of 2003 was $390,000, $19,000 or 4.6% less
than net income recorded of $409,000 for the fourth quarter of 2002. Net
interest income for the fourth quarter of 2003 was $1,285,000 compared to
$1,573,000 for the fourth quarter of 2002. The Company recorded no provision
for loan losses for the fourth quarter of 2003, compared to $30,000 for the
quarter ended December 31, 2002. Noninterest income was $637,000 for the
fourth quarter of 2003 and $779,000 for the fourth quarter of 2002.
Noninterest expense was $1,587,000 for the fourth quarter of 2003 and
$1,646,000 for the fourth quarter of 2002.
Total assets at December 31, 2003 were $159.45 million, compared to $167.25
million at December 31, 2002. Total net loans declined $21.56 million, or
17.6%, mainly due to sales of residential mortgage loans in 2003. Proceeds
from loan sales were mainly invested in short-term interest-bearing time
deposits, which totaled $30.00 million at December 31, 2003.
First Federal Savings Bank of Champaign-Urbana is head quartered in Champaign,
Illinois, and operates through its administrative/branch office in Champaign
and through two other full service branches located in Champaign and Urbana.
The Bank also provides full service brokerage activities through a third-party
broker-dealer and the Bank's subsidiary, Park Avenue Service Corporation, also
sells insurance products through the GTPS Insurance Agency. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation.
This earnings report may contain certain forward-looking statements which are
based on management's current expectations regarding economic, legislative,
and regulatory issues that may impact the Company's earnings in future
periods. Factors that could cause future results to vary materially from
current management expectations include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows, real estate
values, and competition, changes in accounting principles, policies, or
guidelines, changes in legislation or regulation, and other economic,
competitive, governmental, regulatory and technological factors affecting the
Company's operations, pricing, products and services.
Great American Bancorp, Inc. stock is traded on the NASDAQ SmallCap Market
System under the symbol "GTPS."
###
GTPS-pr-2004-01
Great American Bancorp, Inc.
Consolidated Balance Sheets
December 31, 2003 and 2002
(in thousands, except share data)
Dec. 31, 2003 Dec. 31, 2002
(Unaudited)
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Assets
Cash and due from banks $ 4,388 $ 4,990
Interest-bearing demand deposits 9,674 27,344
Interest-bearing short-term time deposits 30,000 --
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Cash and cash equivalents 44,062 32,334
Available-for-sale securities 4,200 --
Held-to-maturity securities 532 1,262
Mortgage loans held for sale -- 1,658
Loans, net of allowance for loan
losses of $1,190 and $1,188 in 2003
and 2002, respectively 100,772 122,336
Premises and equipment 6,299 6,146
Federal Home Loan Bank stock 1,324 1,227
Interest receivable 493 683
Cash surrender value of life insurance 284 268
Insurance premiums receivable 287 225
Deferred income taxes 57 46
Income taxes receivable 208 --
Mortgage servicing rights 151 192
Other 781 873
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Total assets $ 159,450 $ 167,250
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing deposits $ 13,008 $ 12,399
Interest-bearing deposits
Savings, NOW and money market 59,945 57,343
Time 53,711 61,549
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Total deposits 126,664 131,291
Federal Home Loan Bank advances 13,000 15,000
Deferred compensation - directors 661 645
Advances from borrowers for
taxes and insurance 209 265
Accrued postretirement benefit obligation 295 255
Accrued real estate taxes 144 138
Premiums due insurance companies 420 201
Dividends payable 83 90
Income taxes payable -- 55
Interest payable 51 62
Other 287 310
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Total liabilities 141,814 148,312
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Stockholders' Equity
Preferred stock, $0.01 par value
Authorized and unissued --
1,000,000 shares -- --
Common stock, $0.01 par value
Authorized -- 7,000,000 shares
Issued -- 2,052,750 shares
Outstanding: 2003 - 756,003 shares,
2002 - 818,490 shares 21 21
Additional paid-in-capital 20,180 20,166
Retained earnings 20,740 19,374
Accumulated other comprehensive income
Unrealized appreciation on available-
for-sale securities, net of income
taxes, 2003 - $14 20 --
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40,961 39,561
Treasury stock, at cost
Common: 2003 - 1,296,747 shares,
2002 - 1,234,260 shares (23,262) (20,557)
Unearned incentive plan shares:
2003 - 4,349 shares, 2002 - 4,589 shares (63) (66)
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Total stockholders' equity 17,636 18,938
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Total liabilities and
stockholders' equity $ 159,450 $ 167,250
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Years Ended December 31, 2003 and 2002
(unaudited, in thousands, except share data)
Year Ended Year Ended
Dec. 31, 2003 Dec. 31, 2002
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Interest Income:
Loans $ 7,861 $ 10,215
Available-for-sale securities 18 --
Held-to-maturity securities 56 108
Deposits with banks and other 494 280
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Total interest income 8,429 10,603
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Interest Expense:
Deposits 2,261 3,403
Federal Home Loan Bank advances 595 811
Other 25 30
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Total interest expense 2,881 4,244
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Net Interest Income 5,548 6,359
Provision for Loan Losses -- 170
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Net Interest Income After
Provision for Loan Losses 5,548 6,189
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Noninterest Income:
Insurance sales commissions 1,629 1,428
Brokerage commissions 91 99
Customer service fees 591 598
Other service charges and fees 235 212
Net gains on loan sales 648 647
Loan servicing fees 136 54
Other 9 8
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Total noninterest income 3,339 3,046
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Noninterest Expense:
Salaries and employee benefits 3,677 3,448
Net occupancy expense 566 570
Equipment expense 555 511
Data processing fees 67 72
Deposit insurance premium 21 22
Printing and office supplies 294 283
Legal and professional fees 240 244
Directors and committee fees 142 119
Insurance expense 74 65
Marketing and advertising expense 226 224
Amortization of mortgage servicing rights 171 67
Other 460 517
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Total noninterest expense 6,493 6,142
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Income Before Income Taxes 2,394 3,093
Provision for Income Taxes 692 1,189
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Net income $ 1,702 $ 1,904
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Earnings per share:
Basic $ 2.23 $ 2.28
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Diluted $ 2.02 $ 2.09
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Three Months Ended December 31, 2003 and 2002
(unaudited, in thousands, except share data)
Quarter Ended Quarter Ended
Dec. 31, 2003 Dec. 31, 2002
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Interest Income:
Loans $ 1,739 $ 2,403
Available-for-sale securities 18 --
Held-to-maturity securities 10 23
Deposits with banks and other 126 84
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Total interest income 1,893 2,510
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Interest Expense:
Deposits 460 765
Federal Home Loan Bank advances 142 164
Other 6 8
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Total interest expense 608 937
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Net Interest Income 1,285 1,573
Provision for Loan Losses -- 30
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Net Interest Income After
Provision for Loan Losses 1,285 1,543
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Noninterest Income:
Insurance sales commissions 350 280
Brokerage commissions 23 10
Customer service fees 159 163
Other service charges and fees 58 61
Net gains on loan sales 1 243
Loan servicing fees 42 22
Other 4 --
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Total noninterest income 637 779
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Noninterest Expense:
Salaries and employee benefits 914 902
Net occupancy expense 137 137
Equipment expense 172 138
Data processing fees 15 16
Deposit insurance premium 5 5
Printing and office supplies 66 75
Legal and professional fees 62 67
Directors and committee fees 34 37
Insurance expense 20 19
Marketing and advertising expense 42 63
Amortization of mortgage servicing rights 21 52
Other 99 135
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Total noninterest expense 1,587 1,646
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Income Before Income Taxes 335 676
Provision (Benefit) for Income Taxes (55) 267
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Net income $ 390 $ 409
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Earnings per share:
Basic $ 0.52 $ 0.50
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Diluted $ 0.47 $ 0.45
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Great American Bancorp, Inc.
Selected Financial Data
(unaudited, in thousands, except per share data)
As of As of
Dec. 31, 2003 Dec. 31, 2002
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Total assets $ 159,450 $ 167,250
Total loans, net 100,772 123,994
Loan loss reserve 1,190 1,188
Non-performing assets 8 184
Non-performing assets to total assets 0.01% 0.11%
Allowance for loan losses to total assets 0.75% 0.71%
Investment securities 4,732 1,262
Total deposits 126,664 131,291
Checking deposits 35,218 32,787
Money market deposits 18,991 19,507
Passbook savings deposits 18,744 17,448
Certificates of deposit 53,711 61,549
Federal Home Loan Bank advances 13,000 15,000
Total stockholders' equity 17,636 18,938
Three Months Ended Year Ended
Dec. Dec. Dec. Dec.
2003 2002 2003 2002
(unaudited) (unaudited)
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Net interest margin (annualized) 3.45% 4.14% 3.64% 4.18%
ROA (annualized) 0.96% 0.99% 1.02% 1.15%
ROE (annualized) 8.81% 8.65% 9.57% 10.17%